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Financial planning is a step by step process of getting what is expected out of the complete financial requirement. There are six steps to be followed to achieve your financial planning:

1) Setting goals with the client:This step is meant to identify where the client wants to reach in terms of his finances and life goals. At this step there is a need to study the client’s requirements and needs and what his goals are.

2) Gathering the relevant information from the client:This would include the qualitative and the quantitative aspects of the client’s financial and relevant non-financial situations. This helps in studying and analyzing the existing portfolio of the client and to arrive at his current asset allocation. Usually, this is the single most important factor which helps a person meets his financial goals.

3) Gathered information is Analyzed:The information gathered is analyzed that client’s situation is properly understood. This includes determining whether there are sufficient resources to meet the client’s goals and what those resources are.

4) Constructing a Financial Plan:Based on the understanding of what the client wants in the future and his current financial status. A road-map to the client’s goal is drawn to facilitate the achievement of those goals.

5) Implementing the strategies in the plan:Guided by the financial plan, the strategies outlined in the plan are implemented using the resources allocated for the purpose.

6) Monitoring implementation and reviewing the plan:The implementation process is closely monitored to ensure and it stays in alignment to the client’s goal. Periodic reviews are undertaken to check for miss-alignment and changes in the client situation. If there is any significant change in the client’s life situation for that matter, the strategies and goals on a financial plan is revised accordingly.

Henceforth, all it takes to make a complete financial planning is to have an understanding about where you are and where you want to be. This determined by the discussed six steps which would help a planner, a financial planner to sit along with his client and understands his client’s risk appetite and the current asset allocation and how the current assets are placed and are they placed well enough to achieve the goals or the objectives that the client has put to achieve in his life.

In conclusion, it can be stated that achieving financial nirvana isn’t as difficult as it is often made out to be, to get there all one needs is to stick to the basics of financial planning and execute that accordingly.